Ecuadorean plaintiffs drop $9.5 billion claims against Chevron

Chevron

Chevron Corporation could breathe some sigh of relief after a group of Ecuadorean plaintiffs has now dropped their claim against the oil giant.

A group of Ecuadorean plaintiff filed a $9.5 billion claim against Chevron Corp. in 2011.

The charges were dropped after the dismissals of their claims in Argentina and Brazil, findings against them in the United States and Gibraltar.

There was also a ruling in The Hague that the Republic of Ecuador’s failure to prevent the continuation of the fraudulent litigation scheme violated international law, the plaintiffs ended their only remaining lawsuit by dismissing the Canadian case. The plaintiffs further agreed to pay costs to Chevron.

It would be recalled that Chevron had recently moved to dismiss the Canadian suit on the grounds that its continuation would be an abuse of the country’s legal system, a waste of its judicial resources, and contrary to international law. The Ecuadorian plaintiffs and their counsel did not oppose Chevron’s motion to dismiss and instead consented to the unconditional and final dismissal of the lawsuit.

Counsel to Chevron Corp., and it vice president, R. Hewitt Pate, said: “Chevron is pleased that the promoters of the fraudulent scheme have apparently realized that no legitimate court would enforce the judgment that they purchased in Ecuador. Chevron will continue its efforts to hold the lawyers and investors behind this fraudulent scheme accountable.”

It would be recalled that an earlier ruling at the Hague also found the Republic of Ecuador liable for violating its obligations under international law. A unanimous ruling in favor of Chevron, the tribunal – including the arbitrator chosen by the Republic of Ecuador – held that the $9.5 billion judgment rendered against Chevron in Ecuador in 2011 was procured through fraud, bribery, and corruption, and was based on claims that had been already settled and released by the Republic of Ecuador years earlier.